When a Foreign Entity Has the Foreign Currency as Its

question 54

Multiple Choice

When a foreign entity has the foreign currency as its functional currency,it uses which exchange rate to translate revenues and expenses in the income statement?

• A) the average exchange rate during the period
• B) the end of the period exchange rate
• C) the historical exchange rate
• D) the exchange rate on the date the asset or liability was obtained

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Definitions:

Big Five

The Big Five refers to five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Reciprocal Determinism

A concept in psychology that suggests individual behavior, personal factors, and environmental influences all operate as interlocking determinants of each other.

Spotlight Effect

The tendency to overestimate the extent to which others notice and evaluate our appearance, performance, and mistakes.

Defensive Self-Esteem

A form of self-esteem that is fragile and primarily focused on defending oneself from criticism and failure.